Anaam Holding records loss of SR1.8 mln during Q2

Anaam International Holding Group recorded a net loss after zakat and tax in the second quarter of SR1.78 million, compared to a profit of SR42 thousand in the same quarter of last year.

This came after announcement on Monday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The operational loss amounted to SR831 thousand in the second quarter, compared to a loss of SR2.5 million in the same quarter of the previous year, down 66.8%.

The net profit after zakat and tax in the 6-month period amounted to SR1.5 million, compared to a loss of SR2.4 million in the same period last year.

The gross shareholders’ equity “without minority rights” amounted to SR314.3 million in the current period, compared to SR84.3 million in the same period last year, a growth of 272.7%.

Profits per share in the current period amounted to SR0.2, compared to a loss of SR0.44 in the same period last year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:

The reason for achieving net loss during the current quarter compared to a net profit in the same quarter of the last year is due to higher cost of sales by the newly acquired entities and the decrease in fair value of other investments.

The gross profit has decreased by 67% during the current quarter compared to the same quarter of the previous year mainly due to the increase in cost of sales for newly acquired entities by 189% despite the increase in the revenue of 108%.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:

The reason achieving a net loss during the current quarter compared to achieving net profit in the previous quarter of the current year is mainly due to decrease in the fair value of other investments.

The gross profit has decreased by 30% during the current quarter compared to the previous quarter of the current year mainly due to additional cost of sales of the new entities, overall, the cost of sales has increased by 28% despite the increase in the revenue of 23%.

The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:

The reason for achieving net profit during the current period compared to a loss in the same period of the last year is due to increase in revenues by the newly acquired entities, revaluation of investment property and gains from the other investments.

The gross profit has decreased by 64% during the current period compared to the same period of the last year mainly due to increase in the cost of sales of the new entities, overall, the cost of sales has increased by 161% despite the increase in the revenue of 84%.

We would like to draw attention to the following:

1. As stated in note 4 to the accompanying interim condensed consolidated financial statements, the property, plant, and equipment includes land and building amounting to SR 14 million for which the ownership is not registered in the name of the Group.
2. As stated in note 5 to the accompanying interim condensed consolidated financial statements, the investment property represents land amounting to SR 16.8 million of which the ownership is not registered in the name of the Group.

Our conclusion is not modified in respect of these matters.

Other matter:

The interim condensed consolidated financial statements of the Group for the three-month and six-month periods ended 30 June 2021 have been reviewed by another auditor who has issued an unmodified conclusion on those interim condensed consolidated financial statements on 21 August 2021 and the consolidated financial statements for the year ended 31 December 2021 have been audited by the same auditor who has expressed unqualified opinion on those consolidated financial statements on 31 March 2022.

Some comparative figures have been reclassified to conform to the current presentation

The value of accumulated losses during the period ending on 30/06/2022 amounted to SR7.2 million, or 2.3% of the capital.